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BREAKING: DOJ Sues AT&T to Block Time Warner Acquisition

Streambuzz has learned, according to a person familiar with the matter, that the U.S. Justice Department is poised to sue to block AT&T’s $85.4 billion takeover of Time Warner.

AT&T dealt a major setback in bid for Time Warner

The standoff has occurred after more than a week of behind the scenes negotiating over the proposed takeover. The news has sent Time Warner shares down in anticipation of the DOJ announcement and pending litigation.

The DOJ suit would be a major setback for AT&T as it seeks ownership of Time Warner’s enormous library of films, HBO, live TV programming and other content.

It has been known for some time that the US Department of Justice and representatives from AT&T have been sparring over details about the proposed takeover of Time Warner. Namely, the selling off of CNN, a Time Warner property whose coverage has been extremely critical of the Trump administration.

For months now AT&T has been conducting business as if it were a done deal. For example, AT&T has negotiated a sweet deal with Time Warner for HBO subscriptions and is practically giving them away to DIRECTV NOW subscribers. At just $5 a month, they currently enjoy the lowest price for the service, which is normally $15.

To bolster the source’s information, we have learned that the Justice Department plans to make a major antitrust announcement Monday afternoon, without specifying the topic. We expect the announcement any moment now.

“Today’s DOJ lawsuit is a radical and inexplicable departure from decades of antitrust precedent,” David R. McAtee II, AT&T’s general counsel

Developing…

How may this news affect cord cutters? How will it affect AT&T’s strategy for DIRECTV NOW? Will HBO continue to be subsidized at just $5 a month?

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